ROI in PR Measurement - amecorg.comamecorg.com/images/public/downloads/apac/Workshop_B.pdf · •...

ROI in PR Measurement

developing a practical strategy Mike Daniels

Senior Consultant, Report International Ltd

Chairman, AMEC

Route map

• Introduction to AMEC

• Defining ROI

• Financial v non financial ROI

• Social media

• Outputs to outcomes – introducing the Valid Metrics grids

• Beyond AVE

• Questions and debate…

AMEC – a very brief history

• Founded to represent major media analysis companies • Informal mission: “to create educated consumers for measurement” • Initially UK focus • 2011 > 100 members, 35 countries • Includes

– Measurement companies – PR agencies and consultancies – Academics

• Key activities – European Summit on Measurement (June) – London Measurement Conference (November) – Webinars – Regional mini-Summits

• Resources – Knowledge share – Online college

1. Importance of goal setting and measurement

2. Measuring the effect on outcomes is preferred to measuring outputs

3. The effect on business results can and should be measured where possible

4. Media measurement requires quantity and quality

5. AVEs are not the value of public relations

6. Social media can and should be measured

7. Transparency and replicability are paramount to sound measurement.

The Barcelona Principles

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• Return is – Financial

• Revenue • Avoid cost • Reduce cost

– Non financial • Reputation • Stock/share price • Employee engagement/productivity

• Investment is – Financial – Human

Where to start on ROI?

ICCO Summit 2011 6

“The … definition of ROI is a ratio of how much profit or cost saving is realised from an activity against its actual cost … often expressed as a percentage.”

ROI definition

ICCO Summit 2011 7

“In reality few PR programs can be measured in such a way …” (IPR 2004)

• 2/3rds of PR people use “ROI” term when planning and evaluating communication activity. ROIs related to communication objectives (66.7%) much more widely used than financial ROIs (12.8%)

• Clear difference in ROI practices between consultants/freelances and in-house colleagues. Consultants and freelances (73.1%) offer an ROI formula to clients but only 26.3% of in-house practitioners have one;

• Industry-wide ROI formula: only 35.6% supported the proposition with 64.4% opposed. “No one size fits all”.

UK industry survey of ROI

ICCO Summit 2011 8

ROI – the old model

From: Primer of Public Relations Research, 2nd Ed. by Don W. Stacks. Copyright 2011 Guilford Press. All rights reserved.

Return on Investment

Sales Responses Enquiries Costs

Marketing

Reach Advertising value equivalency (AVE)

Advertising

Placement Clips Promotion

Public Relations

© David Michaelson & Company, LLC, 2011

ROI – a new model

Return on Investment

Sales Responses Enquiries

Costs

Financial Indicators

Credibility Reputation Confidence

Trust

Reputational Indicators

ROE

Stakeholder Expectations

© David Michaelson & Company, LLC, 2011

AND THEN THERE’S SOCIAL MEDIA

ICCO Summit 2011 11

• ROI is a form of impact, but not all impact takes the form of ROI • ROI is a financial metric. It is tangible. Must take one of three forms:

1. Revenue generated 2. Cost savings 3. Cost avoidance

• Impact is an investment that eventually may, over time, be ‘cashed in’ as ROI. It has both tangible and intangible components.

• A small percentage of social business efforts are designed to achieve true ROI in the short-term

• They are an investment, creating impact/value that accumulates over time

IMPACT AND ROI

ICCO Summit 2011 12

• TAKE OFF AMEC LOGO FROM NEXT SLIDE ONWARDS

• Assumptions: – 25% of video views mitigated call center calls

– 50% of tweets resolved in-channel (crowd-source or via response), 50% to call center

– Average call center time-to-resolution = 2 minutes

– Average time spent per video view = 2 min

A hypothetical example

ICCO Summit 2011 14

DATA ROI CALCULATION

100,000 tweets seeking assistance (100,000 x 0.5) = 50,000 x 2 minutes = 100,000 minutes saved

500,000 video view (500,000 x 0.25) = 125,000 views x 2 min = 250,000 minutes saved

350,000 minutes = 5,833 hours saved

Call centre salary + overhead = $30/hr 5,833x $30 = $175,000

Social media investment= $75,000 ROI = ($175,000 -$75,000)/$75,000 x 100 = 133%

• Employee retention • Calls to customer service line • Loyalty behavior / Scope of purchases • Recommending brand • Repeat purchases • Customer retention • Number of influencers advocating your message • Online engagement with consumer base • Community support for company initiatives • Customer satisfaction • Message recall

Non-financial Indicators – the Philips

model

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• How much share/impact do specific communication measures have against company performance?

• What is the optimum communication budget (ROI) in order to achieve the company’s target?

• What media mix has the biggest effect on brand awareness?

• Which products out of the portfolio are the best drivers?

• Should communication activities be planned in parallel to competitors or in clear space?

• Which communication strategy is most successful?

An alternative modelling approach

16

IMPLEMENTING A NEW FRAMEWORK: VALID METRICS GRIDS

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The Valid Metrics Framework

Key Area of Communication

(Brand/Product Marketing, Reputation Building, Issues

Advocacy/Support, Employee Engagement, Investor Relations, Crisis/Issues Management, Not-

for-Profit, Social/Community Engagement)

Awareness Knowledge/

Understanding Interest/

Consideration Support/

Preference Action

Public Relations Activity

Intermediary Effect

Target Audience Effect

COMMUNICATIONS/MARKETING STAGES

CO

MM

UN

ICA

TIO

NS

PH

ASE

S

ORGANIZATION/ BUSINESS RESULTS

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Awareness Knowledge Consideration Preference Action


• Content creation

• Traditional media engagement

• Social media engagement

• Influencer engagement

• Stakeholder engagement

• Events/speeches

Intermediary Effect

• Audience reach [traditional & social media]

• Impressions/Target audience impressions

• Number of articles • Video views • Frequency • Prominence • Share of voice

• Key message alignment

• Accuracy of facts


• Frequency of (positive) mentions

• Expressed opinions of consideration

• Social network Followers

• Retweets/Shares/ Linkbacks

• Endorsement by journalists or influencers

• Rankings on industry lists

• Expressed opinions of preference

• Social network Fans

• Likes


• Unaided awareness • Aided awareness

• Knowledge of company/product attributes and features

• Brand association and differentiation

• Relevance of brand (to consumer/ customer)

• Visitors to website • Click-thru to site • Time spent on site • Downloads from site • Calls • Event/meeting

attendance

• Attitude uplift • Stated intention to

buy • Brand preference/

Loyalty/Trust • Endorsement • Requests for quote • Links to site • Trial

Brand/ Product Marketing

• Sales • Market share • Cost savings • Leads generated • Customer

loyalty

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Awareness Understanding Interest Support Action







• Events/speeches

Intermediary Effect








• Expressed opinions of interest




• Expressed opinions of support


• Likes



• Knowledge of issue • Knowledge of client

POV

• Relevance of issue (to stakeholder)


attendance

• Attitude change • Endorsement • Links to site

Issues Advocacy & Support

• Active advocates • Letters of support (to

parliamentarians, congress,

etc) • Registrations (to join

support group)

• Donations • Legislation/

regulation passed or blocked

• Cost savings

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Manage Company Reputation

Awareness Knowledge Interest Support/

Preference Action

Comms Activity


• Media engagement

• Influencer engagement (analyst, policymakers, etc.)

• Stakeholder engagement (advertisers, agencies, customers, etc.)

• Executive communications

• Employee engagement

• Events / Salon series

Intermediary Effect

• Reputation score

• Positive reputation share of voice

• Reach

• Number of articles

• Prominence

• Product and issues positive rep share of voice

• Reputation drivers

• Intranet story views


• Truthsquadding

• Topic impact on reputation

• Product impact on reputation


• Tone

• Social network followers

• Social network comments

• Positive reputation share across key audiences

• Influencer impact on reputation

• Tone of analyst commentary

• Social network fans

• Likes


• Comms priorities become positive reputation drivers

• Gains in positive rep share of voice

• Permeate competitor launch coverage

• Brand salience

• Less truthsquadding required

• Key topics impacting reputation align with Comms priorities

• New products / feature announcements grow positive reputation

• Brand experience (usage)

• Relevance of company (to stakeholder)

• Event/meeting attendance

• Journalist reaches out to Y! for comment on competitors’ news

• Uplift in emotional drivers

• Influencer / stakeholder endorsement / content use

• Brand ratings / attitudes

• Shifting journalist coverage from negative to positive

• Social network referrals

• Future usage

• Revenue growth

• Unique user growth

• User registrations

• Improve engagement (minutes & page views)

• Customer retention

• Customer & business loyalty scores

• App downloads

• Share price

Key support - Yahoo!

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Silver Anvil Award Winner 2009



• Made donations to Pennsylvania State University and University of California, Davis and to The Pollinator Partnership.

• Created Bee Board with PSU and UCD scientists and beekeepers.

• Launched bee-dependent flavor, Vanilla Honey Bee, with percentage of sales to go towards CCD research. Also created special logo for all bee-dependent products and printed CCD info on pint lid.

• Prior to official launch, brand announced the campaign to beekeeping and scientific community at an industry conference, encouraging them to act as brand ambassadors.

• Created comprehensive media strategy, including scientific, agricultural, environmental, gardening, and beekeeping trade outlets, expanding beyond traditional lifestyle and food outlets.

• Developed B-roll featuring HD plant footage, Bee Board members, and bees pollinating crops.

• Million Seeds Challenge - reached out to bee supporters online using Craiglist and MeetUp.com.

• During national Pollinator Week, HD and The Pollinator Partnership hosted a briefing on Capitol Hill.

Brand Marketing/ Issues Support: Haagen-Dazs

loves Honey Bees

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Intermediary Effect

• More than 277 million media impressions (total media goal: 125 million impressions in year one)

• 1,097 unique news placements including CNN, AP, NPR, WSJ, Today, NYT, Everyday with Rachel Ray (HD was mentioned in the headline or lead)

• Virtually 100% of the media coverage carried brand name/product mentions and key PR messages

• 93% of all media coverage was positive toward the brand


loves Honey Bees

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• Survey showed 8-point increase in awareness of the honey bee issue

• HD also had the highest unaided brand recall among consumers identifying companies/ organizations working to help the honey bees

• Survey showed a 6-point increase in accurate identification of the issues

• 469,798 unique visitors to the site and viewed 8 pages per visit (82% above industry average)

• Number of new visits averaged 76% above industry standards

• 950+ consumers and organizations contacted HD with requests for info, offers to collaborate and compliments

• More than 1.2m friendly flower seeds were accepted by community groups individuals, and local businesses

• HD experienced a 13% increase in brand advocacy rating (between Q1 and Q2) to 69%, the highest in the category

•5.2% April sales increase – the largest single sales spike in a year and 4% growth sustained from April-July 2008


loves Honey Bees

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Awareness Knowledge Interest Support/

Preference Action

Public Relation Activity






• Events/speeches

Intermediary Effect















• Likes



• Knowledge of company profile and offer

• Relevance of company (to stakeholder)


attendance

• Attitude change • Uplift in reputation

drivers e.g. Trust, Admiration

• Endorsement • Belief in corporate

brand • Links to site • Enhanced

relationships with key stakeholders

Reputation Building

• Sales • Market share • Share price • Talent retention and

recruitment • Cost savings • Customer loyalty • Legislation/regulation

passed or blocked

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Silver Anvil Award Winner 2008

Awareness Knowledge Interest Support Action


• Secondary research, influencer-perception survey, message research and media analysis preceded the campaign

• Engaged influencers – roundtables; nutritionist sessions; benchmarking panel; ADA alliance; web poll; online community of 300+ influencers

• Educated influencers – participated in major health events; top media meetings; mailings about new products and new snacking research

• Evangelized influencers – developed educational content off and online; “Snack Sense” Website; developed curriculum and web-based program for health professionals and consumers.

• 10,000 educational folders and CDs distributed to influencers at conferences

• Armed 34,000 health pros with materials

Reputation Building:

Frito-Lay – Junk Food to Good Food

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Intermediary Effect

• 200 million media impressions

• Key nutrition story in Good housekeeping reaching 5 million

• Key message regarding nutritional profile of F-L increased from 3% in Q2 to 22% in Q4

• Key message re: industry leadership increased from 2% in Q2 to 11% in Q4

• 12% decrease in negative coverage

• 11% increase in positive media coverage

• Daily News article quoted F-L’s ingredients as … “better than you remember”

• Dr. Madeline Fernstrom talked about F-L in positive light on iVillage and two Today Show segments

• Newsweek praised F-L for product reformulations

• PEOPLE featured Ruffles as a good vending machine option

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• Snack Sense Web site averages 70 hits/day and 3 page views/day

• ADA presentation had 1000 attendees and a 90% positive rating

• ADA symposium had 94% good or excellent ratings with 71% agreeing “learning something new about Frito-Lay”

• SNE Influencer Salon Past President applauded F-L to 1000 members

• Hy-Vee requested educational materials for 150 store nutritionists

• 33% of influencers had a positive perception of F-L, an increase of 16%, which exceeded goal of a 10% increase

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• Content creation (e.g. assets created, videos/podcasts)

• Social media engagement (e.g. blog posts, blogger events, blogger briefings, Twitter posts, community site posts & events)



• Events/speeches

Intermediary Effect


• Earned media site visitors/day

• % share of conversation

• Video views • Prominence

• Key message alignment [traditional & social media]

• Accuracy of facts • % share of

conversation




• % share of conversation





• Likes


• Unaided awareness • Aided awareness • Owned media site

visitors per day • Social network

channel visitors

• Knowledge of company/product attributes and features

• Brand association and differentiation

• Relevance of brand (to consumer/ customer)


attendance

• Attitude uplift • Stated intention to

buy • Brand preference/

Loyalty/Trust • Endorsement • Requests for quote • Links to site • Trial

Social/Community Engagement

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NOTE: Within social media, several of these metrics could straddle two rows as an Intermediary Effect and/or Target Audience Effect, depending on who’s engaged in the conversation. For simplicity, we have listed those metrics under Intermediary Effect to reflect the general conversation as you would not know if all participants are in your target audience. If the commenters are known to be in your Target Audience, you could reflect those metrics under Target Audience Effect.

• Active advocates

• Brand engagement

• Leads/sales

• Revenue

• Market share

• Cost savings

PR Week Award Winner 2011



• Content creation (e.g., Op-Ed in Huffington Post)

• Media relations outreach around milestones (POP, Super Bowl, Ambassadors, Grant recipients)

• Social media outreach

• Event: Rang bell at NYSE

• Event: In-house/online brainstorm to ignite conversation on national scale

• Real-time digital engagement

Social/Community Engagement: Pepsi Refresh

Project

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Intermediary Effect

• 3+ billion audience impressions over 8 months (exceeded goal by nearly 12-fold)

• 140,000 Tweets

• 2+ million online comments

• Increased Facebook “likes” by 600% + (to over 2 million)

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Project



• Pepsi one of most talked-about brands at Super Bowl (Nielsen)

• 37% Americans now aware vs. 12-21% for similar cause marketing programs

• 18.5+ million unique visitors to site: Refresh Everything. com

• Correct Pepsi Refresh Project knowledge = 25% (vs. 5-12%)

• Increased brand loyalty attributes including favorability, intent, and trust along with intent to purchase among Millennials

• Brand Engagement -Visits to the Refresh Everything. com site resulted in:

• 10,000 fully submitted ideas

• 12,000+ projects have received votes

• 76 m votes cast

• 4m + Americans have voted

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Project

• To provide a dollar/euro/yen or other financial denomination for PR results, try using: – Total value of sales/sales leads/revenue generated by

PR activities

– PR activities’ contribution to sales/sales leads/revenue (often calculated via marketing mix analysis)

– Cost savings due to PR activities (e.g. reduced customer complaints, etc.)

– Increased target market size due to expanded mindshare

– Increased or decreased market capitalization

Replacing AVEs

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200 delegates at the AMEC 2011 Summit agreed 4 key priorities for action

1. How to measure the return on investment (ROI) of public relations (89%)

2. Create and adopt global standards for social media measurement (83%)

3. Measurement of PR campaigns and programmes needs to become an intrinsic part of the PR toolkit (73%)

4. Institute a client education program such that clients insist on measurement of outputs, outcomes and business results from PR programs (61%)

Reflecting views of clients, PR agencies, measurement companies

The Lisbon Agenda

ROI in PR Measurement - amecorg.comamecorg.com/images/public/downloads/apac/Workshop_B.pdf · •...

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